WASHINGTON, D.C. – April 27, 2015 – (RealEstateRama) — Congressman John Shimkus (R, Illinois-15) sent a letter to the Federal Energy Regulatory Commission (FERC) today questioning this month’s Midcontinent Independent System Operator (MISO) planning resource auction that resulted in significantly higher electricity capacity prices for central and southern Illinois. Congressmen Mike Bost (R, Illinois-12) and Rodney Davis (R, Illinois-13) joined Shimkus on the letter.
The letter notes that capacity prices for MISO Zone 4, which includes the majority of Illinois, unexpectedly skyrocketed “from $16.75 per MW-day in 2014-2015, to $150 per MW-day for 2015-2016.”
“Not only is this a 900 percent increase from last year,” Shimkus said, “but this year’s capacity rate for our region is 40 times the price set for neighboring zones. Illinois ratepayers deserve to know whether all the rules for this auction were properly followed and, if so, what can be done to prevent similar rate spikes moving forward.”
“A rate increase of this magnitude is harmful to working families, small businesses and manufacturers in Southern Illinois, especially since it won’t apply to neighboring jurisdictions,” said Bost. “I look forward to the FERC’s response to this inquiry.”
“Illinois families and businesses have a right to know that this auction was done properly and followed all the rules before being forced to pay higher utility bills,” said Davis. “Given the vast discrepancies from previous auctions, I want to make sure the proper review took place and I look forward to FERC’s response.”
The extent to which the capacity rate increase will affect individual ratepayers is not yet fully known. State officials have also questioned the auction in a separate letter to MISO.
A copy of the Shimkus, Bost and Davis letter can be found HERE.